Accounts receivable on January 1 was $38,000 and, at the end of the year it was $53,000. Net credit sales were $168,000. Accounts receivable turnover is: (Round your answer two decimal places.)
A) 1.85 times.
B) 3.69 times.
C) 4.42 times.
D) 11.20 times.

Question

Quizplus · Accepted Answer

The accounts receivable turnover is calculated as Net Credit Sales / Average Accounts Receivable. Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2 = ($38,000 + $53,000) / 2 = $45,500. Therefore, Accounts Receivable Turnover = $168,000 / $45,500 = 3.69 times.

Accounts Receivable on January 1 Was $38,000 And, at the End